1. 1. delivering worksite wellness programs that empower healthy lifestylesDriving Performance with Engaged EmployeesA presentation for:SBANE MembersJune 5, 2012
2. 2. Agenda What is engagement? Why does engagement matter? What is the state of engagement in general? What drives engagement? How do I assess engagement in my company? Where do I start to improve engagement?2
3. 3. Introduction Eighty percent of success inlife is showing up Woody Allen 3
4. 4. What is Engagement?4
5. 5. What is Engagement? A positive, enthusiastic and effective connection with work thatmotivates an employee to invest in getting the job done, not just wellbut with excellence because the work energizes the person.Sloan Center on Aging & Work, BC Personal engagement is defined by feelings of urgency, focus,enthusiasm and intensity. It is the energized feeling that an employeehas about work. SHRM 2011 Employee Job Satisfaction and Engagement Survey Research shows that engaged employees are more productiveemployees. They are more profitable, more customer-focused, safer,and more likely to withstand temptations to leave the organization. Inthe best organizations, employee engagement transcends a humanresources initiative. it is the way to do business.Employee Engagement Whats your Engagement Ratio Gallup Consulting 5
6. 6. Engaged EmployeesThree Types of Employees ENGAGED employees work with passion and feel a 1 profound connection to their company. They drive innovation and move the organization forward. NOT-ENGAGED employees are essentially checked out. Theyre sleepwalking through their work day, 2 putting time but not energy or passion into their workACTIVELY DISENGAGED employees arent justunhappy at work; theyre busy acting out their 3unhappiness. Every day, those workers undermine whattheir engaged coworkers accomplish. Source: Gallup Management Journal; At Work, Feeling Good Matters by Jerry Krueger and Emily Killham 6
7. 7. What is Engagement? Engagement Opinions - The feel of employee engagement Employees are determined to accomplish their work goals AND confident that they could meet those goals34% strongly agree 49% agree83% TOTAL Engagement Behaviors - The look of employee engagement Employees are encouraged to be proactive and take action when they see a problem or opportunity 19% strongly agree41% agree 60% TOTAL The conditions of employee engagement Employees need the capacity to engage, reasons to engage and the feeling that they are free to engage.Source: SHRM 2011 Employee Job Satisfaction and Engagement Survey. 7
8. 8. Maslows Hierarchy 8
9. 9. Employee Hierarchy of Needs Career SuccessTraining and Development Recognition Health/Welfare Benefits CompensationJob Security9
10. 10. Engagement is Unlocking Potential 10
11. 11. Why does Engagement Matter? Highly engaged workers tend to have a 26% higherproductivity rate, a lower turnover rate, and miss 20% fewerwork days. A survey of 400 companies by Hay Associates showed thatthose in the top quartile on engagement had 2.5 times therevenue of comparison companies. According to Gallup, more than two-thirds of Americanworkers are disengaged in their workplaces. As of Q3 2005,actively disengaged employees cost the US economy about$370B in lost productivity per year. 11
12. 12. Cost of Disengagement Decreased productivity costs of $3.4 - $10K per disengagedemployee (Gallup Research) More sick days and tardiness Missed deadlines and poor sales results Customer complaints Cynicism, negativity, and cant do versus can do attitudeSource: June, 2011 PeopleMetrics12
13. 13. Current State of Engagement According to Gallup, more than two-thirds of American workersare disengaged in their workplaces. Gallup Engagement Ratio: a macro-level indicator oforganizational health World class organizations: 9.57 engaged:1 actively disengaged employee Average organizations: 1.83 engaged:1 actively disengaged employee Cost of a disengaged employee estimated at $16K peremployee lost productivity + absenteeism + customer dissatisfaction + product quality/rework 13
14. 14. Current State of Engagement SHRM 2011 survey responses: 99% of HR leaders said engagement is a key issue to but nonstrategic engagement and recognition programs continue to pervade companies Employee engagement is the most critical HR challenge in the next three to five years, with 99% of HR professionals listing it as important or very important 86% of HR leaders track engagement 71% monitor in exit interviews Cost of turnover missed opportunity to understand what ittakes to engage employees Rule of thumb cost 3x as much to replace an employee as it does to keep themSource: 2011 SHRM/Globoforce Employee Recognition Tracker Survey 14
15. 15. Case Examples Diamond Antenna sense of purpose Design and manufacture rotary components Asked sales to identify end use of product with 3 questions Used variety of visuals to generate interest & enthusiasm Rapid7 impact of culture on success Leading provider of security risk intelligence solutions Over 900% increase in revenue over last 4 years Employee passion, drive, commitment and knowledge are key Work hard and play hard celebrating success is companys DNA15
16. 16. Drivers of Engagement16
17. 17. What Drives Engagement?BENEFITS OF ENGAGEMENTBENEFITS OF ENGAGEMENTFOR EMPLOYEES FOR EMPLOYERSEngaged employees report lower Engaged employees use less healthstress.care.Engaged employees report higherEngaged employees take fewer sickjob satisfaction.days.Engaged employees indicate moreEngaged employees are moresatisfaction with personal lives,productive.overall. Engaged employees have longer tenure. Engaged employees create stronger customer relationships.Engaging the 21st Century Multi-Generational Workforce Findings from the Age & Generations Study 17
18. 18. Drivers of EngagementSource: Sloan Center on Aging & Work, BC Engaging the 21st Century Multi-Generational Workforce 18
19. 19. Drivers of EngagementSource: Sloan Center on Aging & Work, BC Engaging the 21st Century Multi-Generational Workforce 19
20. 20. Assessing Engagement 20
21. 21. Assessing Engagement at Your Workplace What do we need to know? What information do we have? How do we get the data we need? When should we get it? Where does YOUR organization stand? 21
22. 22. One Model Gallups 12 Questions Do you know what is expected? Do you have materials and equipment to do your best? Do you have the chance to do your best every day? Were you recognized or praised in the last 7 days? Does your boss or someone at work care about you? Does someone at work encourage your development? 22
23. 23. One Model Gallups 12 Questions (continued) Do your opinions count? Does the companys mission and purpose make you feel yourjob is important? Are your colleagues committed to doing quality work? Do you have a best friend at work? Has someone discussed your progress in the last 6 months? Have you had chances to learn and grow during the last year? 23
24. 24. Assessing Engagement at Your Workplace Connection Do managers link engagement to business priorities? Commitment Do managers at all levels recognize above & beyond? Attitudes Do employees describe their work as energizing and meaningful? Helps What promoters of engagement exist? Barriers What has to be overcome? Audits Employee/job satisfaction survey Done by a third party provide anonymity and objectivity Management needs to be willing to take action on the results24
25. 25. Assessing Engagement in Your Organization Utrecht Work Engagement Scale Sloan study Find out what Work out ways makes YOURto provide it to employees keep the tick wheels moving.Group ActivitySource: Sloan Center on Aging & Work, BC Engaging the 21st Century Multi-Generational Workforce 25
26. 26. Where to Start to Impact Engagement 26
27. 27. Where to Start to Impact Engagement Build Engagement into all your business practices i.e., Recruiting, Retention, Performance Evaluations Prioritize whats most important Maslows model satisfy basic employee needs first Segment the strategy and tactics Use your assessment info A diverse workgroup will need a variety of engagement factors Examples: Summary of Factors Related to the Levels of Engagement byAge/Generational Group Total Rewards Checklist27
28. 28. Total Reward DefinitionsTOTAL REWARDSDEFINITIONSCOMPONENTPay provided by an employer to an employee for services rendered (i.e. time, effort, and skill). IncludesCOMPENSATIONboth fixed and variable pay tied to levels of performance.Programs an employer uses to supplement the cash compensation that employees receive. These health,BENEFITSincome protection, savings and retirement programs provide security for employees and their families.A specific set of organizational practices, policies and programs, plus a philosophy, that actively supportsWORK-LIFE efforts to help employees achieve success at both work and home.Performance: the alignment of organizational, team and individual efforts toward the achievement ofbusiness goals and organizational success. It includes establishing expectations, skill demonstration,assessment, feedback and continuous improvement. Recognition: Acknowledges or gives specialattention to employee actions, efforts, behavior or performance. It meets an intrinsic psychological needPERFORMANCE & for appreciation of ones efforts and can support business strategy by reinforcing certain behaviors (e.g.RECOGNITION extraordinary accomplishments) that contribute to organizational success. Whether formal or informal,recognition programs acknowledge employee contributions immediately after the fact, usually withoutpredetermined goals or performance levels that the employee is expected to achieve. Awards can becash or noncash (e.g. verbal recognition, trophies, certificates, plaques, dinners, tickets, etc.)Development: A set of learning experiences designed to enhance employees applied skills andDEVELOPMENT & competencies. Development engages employees to perform better and engages leaders to advance theirorganizations people strategies. Career Opportunities: Involve the plan for employees to advance theirCAREERcareer goals. May include advancement into a more responsible position in an organization. TheOPPORTUNITIES company supports career opportunities internally so that talented employees are deployed in positions thatenable them to deliver their greatest value to the organization.Source: WorldatWork28
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30. 30. Tactics to ImproveEngagement 30
31. 31. Tactics Promote Positive Culture Thinner Winner Live Well cookbook Foosball or ping pong table Healthy office parties Walking meetings Gym subsidies Recognition thank you, money/gift cards, senior managers,peersLet them know you care!31
32. 32. Tactics Effective LeadershipKnow them. Grow them. Inspire them.Involve them. Reward them.Source: Towers Watson Viewpoints. Employee Well-Being: Taking Engagement and 32Performance to the Next Level. D. Fairhurst, J. OConnor. 2010
33. 33. Tactics Communicate A Sense of Purpose Stay focused on your purposeThe business and your job, and how you make a difference.33
34. 34. Tactics Compensation and Performance Provide internally fair and competitive base pay Benchmark to know where you are Consider what you can afford Communicate the basics about how pay decisions are made Tell employees where they stand with a strong performancemanagement program Set SMART* goals at the start of the year Provide ongoing feedback Use a consistent, easy-to-complete form with clear rating definitions Deliver timely annual reviews Make it count tie rewards to performance*Specific, Measurable, Achievable, Relevant and Time bound34
35. 35. Build on the Foundation Develop your leaders and employees Communicate the total investment you make to employees Offer a simple, company-sponsored recognition program Build a culture of success, team spirit and celebration35
36. 36. Well-being Drives Engagement 36
37. 37. What is Well-being? The well being is not necessarily the strong, the brave, the successful, the young, the whole, or even the illness-free being. A person can be living a process of wellness and yet be physically handicapped; aged; scared in the face of challenge; in pain; imperfect. No matter what your current state of health, you can begin to appreciate yourself as a growing, changing person and allow yourself to move toward a happier life and positive health.Source: Wellness Workbook: How to AchieveEnduring Health and Vitality, 3rd Edition, John W.Travis, M.D., and Regina Sara Ryan37
38. 38. Relative value of health to the organization27% 41%22%10% Lost productivity: job performance Lost productivity: absence All medical costsWage replacementSource: Integrated Benefits Institute 38
39. 39. Causes of presenteeism Health-related issues Allergies Arthritis Asthma Any cancer Depression/sadness/mental illness Diabetes Heart disease Hypertension Migraine/headache Respiratory infections 39
40. 40. Why are employees disengaged?40
41. 41. Causes of presenteeism Non-health-related issues Distractions Financial troubles or credit stress Child/eldercare Divorce/family problems Employer/employee conflict Workplace conditions Temperature, lighting, air quality, communications41
42. 42. Whats the issue? Unhealthy lifestyle choices Smoking Lack of seat belt use Inadequate sleep OTC medication abuse Excessive caffeine use Little physical activity Lack of periodic screenings High saturated fat diets 42
43. 43. Engagement and Well Being Engagement in the absence Engagement with well-being of well-being can lead to a enables sustained employee burned-out workforceperformance Low Well-BeingHigh Well-BeingHigh Unstable EngagementSustainable EngagementEngagementLow Engagement Chronic Disengagement Complacent Disengagement Source: Towers Watson Viewpoints. Employee Well-Being: Taking Engagement and Performance to the Next Level. D. Fairhurst, J. OConnor. 201043
44. 44. Drivers of Well-Being Leader/Manager Effectiveness Immediate Management Senior Leadership Positive Working Relationships Competence and Environmental Mastery Sense of Purpose Personal Growth and Aspiration Rewards, Performance and Security 44
45. 45. Wrap Up What is engagement? Why does engagement matter? What is the state of engagement in general? What drives engagement? How do I assess engagement in my company? Where do I start to improve engagement?45
46. 46. Contact Information Erika ChinExecutive DirectorChin Compensation & Performance978-621-5171echinccp@comcast.net Karyn White, PHRHuman Resources DirectorDiamond Antenna and Microwave Corp.978-486-0039kwhite@diamondantenna.com Mari Ryan, MBA, MHP, CWWPCCEOAdvancingWellness617-921-0784mari@advwellness.com46